PDA

View Full Version : SA review it's aviation policy


Gunship
26th Jul 2005, 11:44
From Finances 24 :

South Africa is revising its civil aviation policy to ensure the country's multi-billion rand air transport system is globally competitive, environmentally friendly, safe and cost-efficient.

"The proposed policy will provide a comprehensive framework, which covers the important areas of the civil aviation system, such as aviation infrastructure, air transport and aircraft operations as well as their impact on the environment," Johann Bierman, a department of transport official involved in the policy review, said on Tuesday.

The review was being fine-tuned at a time when an unprecedented and crippling strike has hard hit the country's dominant airline, SAA.

Bierman said the world's economic scene and aero-political landscape have undergone fundamental changes since the last aviation policy review in the early 1990s.

Since 1994, government has defined new goals and priorities, which have impacted on civil aviation.

"The Civil Aviation Policy must, inter alia, promote tourism and trade as well as job creation.

"It also has to take into account the continental integration initiatives such as those championed by the Africa Union, Nepad, and air transport liberalisation initiatives embodied in the Yamoussoukro Decision," said Bierman.

Public comment

He said all policy proposals were evaluated, potential impacts quantified and alternative options developed, until a ministerial-appointed steering committee was satisfied that the best options were incorporated into a draft White Paper.

"Based on current planning, the draft White Paper could be submitted to Minister (of Transport, Jeff Radebe) and cabinet during August/September 2005."

Bierman said the policy would be published for public comment once the necessary authorisation has been obtained.

At this stage details of policy proposals could not be disclosed, besides that the White Paper addressed issues relating to infrastructure (airports and airspace); air transport (domestic and international) and environmental issues (noise and engine emissions).

Professor Jackie Walters, chairperson of the department of transport and supply chain management at the University of Johannesburg, said he would like to see policy changes favouring competition.

Currently competition policies were not specific to the aviation industry, with guidelines needed, for example, on "predatory behaviour".

Ending dominance

This will prohibit a dominant airline, such as SAA, from using its power to limit competition in the market or further entrench its dominance.

Walters used the recent "agency override commission" controversy, where SAA paid travel agencies a commission of 10% for selling tickets on their behalf as opposed to the traditional seven percent, as an example of potential predatory behaviour.

Another area needing possible review was the practice of offering domestic frequent-flyer programmes.

Walters argued that this limited competition and "skewed the market" because people were looking at other factors rather than the price of a ticket and airline service levels.

"What we need in South Africa is to untangle bureaucracy and make sure we stick to the principles of competition. The transport sector, particularly aviation, is a major enabler in the economy."

Walter said government also needed to privatise SAA as soon as possible and level the playing fields, where an anomalous situation presently existed because SAA was a government-owned airline competing against private airlines.

http://www.finance24.com/articles/default/display_article.asp?Nav=ns&ArticleID=1518-25_1743752